1. What is the share market?
Share Market- A share market
only allows trading of shares.
The key factor is the stock
exchange – the basic platform
that provides the facilities
used to trade company stocks
and other securities.
A stock may be bought or
sold only if it is listed
on an exchange. Thus,
it is the meeting place
of the stock buyers and sellers.
------------------------------------------------
Share:----
A unit ownership proportional
to the investment made in a company.
What is an ‘Equity’/Share?
Total equity capital of a
company is divided into equal
units of small
denominations, each called a
share. For example, in a
company the
total equity capital of
Rs 2,00,00,000 is divided into
20,00,000 units
of Rs 10 each. Each such
unit of Rs 10 is called a
Share. Thus, the
company then is 11 said to
have 20,00,000 equity shares
of Rs 10
each. The holders of such
shares are members of the
company and
have voting rights.
-------------------------------------------------------
What is Sebi What is the
main role of Sebi?
The SEBI was established
in 1988 but was only given
regulatory powers on April
12, 1992,
through the Securities and
Exchange Board of India Act, 1992.
It plays a key role in
ensuring the stability
of the financial markets in India,
by attracting foreign
investors and protecting
Indian investors.
Sebi Controls The Share
Market in India.
Initially SEBI was a non
statutory body without any
statutory power.
However, in 1992, the SEBI
was given additional statutory
power by the Government of
India
through an amendment to
the Securities and Exchange
Board of India Act, 1992.
------------------------------------------------------
Timing of Indian share Market
Equity- 9:15 am to 03:30pm
Monday to friday
Commodity Market
Agri Commodities 10am to 5 pm
Bullion, Metals, Crude Oil and
Internationally linked Agri
Commodities
10:00 am to 11:30pm
he client code modification
will be allowed only from 11.55 p.m
. up to 11.59 p.m.
-------------------------------------------------------
2.What is BSE and NSE?
The two largest and most prominent
stock exchanges in India are the
Bombay Stock Exchange (BSE)
and the National Stock Exchange (NSE).
While the BSE has the distinction
of being the oldest stock exchange
in Asia, established in
1875, the NSE has quickly grown to
prominence since its creation in 1992.
-----------------------------------------------------
3.What is BSE and NSE index?
Indices are nothing but indicators of
market movement. Sensex is the
benchmark index of S&P BSE
(Bombay Stock Exchange),
whereas NIFTY is benchmark index
of NSE (National Stock Exchange).
NIFTY is also known as CNX NIFTY or NIFTY 50.
------------------------------------------------------
4.How the Sensex is calculated?
One can identify the booms and
busts of the Indian stock market
through Sensex.
Sensex is calculated using
the "Free-float Market Capitalization"
methodology.
As per this methodology,
the level of index at any
point of time reflects
the Free-float market value
of 30 component stocks relative
to a base period.
The index is computed by
weighted average market
capitalization. ... In order
to understand how
the underlying stocks affect
the index, the market weight
(index weight) needs to be calculated.
This is done by dividing the
market capitalization of a company
on the index by the total market
capitalization of the index.
------------------------------------------------------
5.What is the difference
between Sensex and Nifty? --
The main difference between
SENSEX and Nifty is that
SENSEX is the stock market
index for BSE
Limited, while Nifty is
the stock market index
for National Stock Exchange
(NSE).
Another is that SENSEX
is comprised of 30 stocks,
while Nifty is comprised of
50 stocks.
-------------------------------------------------------
6.What is the full form of nifty? -----
Full form of NIFTY is
“National Stock Exchange Fifty” –
it is the broad index of NSE.
NIFTY normally comprises of
50 stocks
but right now there are 51
stocks. ...
It is owned and managed by
India Index Services and
Products Ltd. (IISL).
-------------------------------------------------------
7.What is nifty 50/100/500 in India?
----The NIFTY 50 is a diversified
50 stock index accounting for 12
sectors of the economy.
NIFTY 100 is a diversified 100
stock index representing major
sectors of the economy.
NIFTY 100 represents top 100
companies based on full market
capitalisation from NIFTY 500.
This index intends to measure
the performance of large market
capitalisation companies.
-------------------------------------------------------
9.What is nifty free float
Midcap 100 index?
----- The objective of the
NIFTY Free Float Midcap 100
Index is to capture the movement
and be
a benchmark of the midcap
segment of the market. Market
Representation.
The NIFTY Free Float Midcap
100 Index represents about
11.8% of the free float market
capitalization of the stocks
listed on NSE as on March 31, 2017.
------------------------------------------------------
What is meant by free float
market capitalization? ---
Free float is a term in
stocks trading. It describes
the proportion of shares
of a publicly traded company
that is traded in the stock market
. Note that not
all free float shares may be
actively circulating
on the market at any given
time as many traders purchase
shares as a long-term investment.
------------------------------------------------------
What are depositories? --
Depository in simple terms
is a institution which holds
your securities in a dematerialised
form.
In this case a Depository
is an institution which holds
your Shares, Government Bonds,
Mutual funds etc on your behalf.
Like a Bank is to your Fixed
Deposits, Cash and Recurring
Deposits, a Depository is
to your Shares, Holdings, Government
Bonds etc.
. There are 2 Central
Depositories in India
-----
1) Central Depository Services
India Limited (CDSL)
2) National Securities
Depository Limited (NSDL)
-----------------------------------------------------
Stock Exchanges in India (Equity Market)
1 Ahmedabad Stock Exchange Ltd.
2 BSE Ltd. PERMANENT
3 Calcutta Stock Exchange Ltd.
4 Magadh Stock Exchange Ltd.
5 National Stock Exchange of India Ltd.
commodity derivative exchanges
(Derivative- Gold,Copper,Oil,etc nature provided)
we will discuss seprately.
Ace Derivatives and
Commodity Exchange Limited
India Pepper & Spice
Trade Association
Indian Commodity Exchange Limited
Multi Commodity Exchange of India Ltd.
National Commodity & Derivatives
Exchange Ltd.
National Multi Commodity
Exchange of India Limited.
Rajkoversal Commodity Exchange Ltd.
Universal Commodity Exchange Ltd.
----------------------------------------------------
Equity Market- A market that gives
companies a way to raise needed
capital and gives investors
an opportunity for gain by
allowing those companies'
stock shares to be traded.
Also called stock market.
--------------------------------------------------------
Commodity Market:- A commodity
market is a market that trades
in primary economic sector
rather than did products.-----------------------
Soft commodities- are agricultural
products such as wheat, coffee,
cocoa, fruit and sugar.
-------------------------------------------------
Hard commodities- are mined,
such as gold and oil.
---------------------------------------------------------
Metals (such as gold, silver
, platinum and copper) -
Energy -(such as crude oil,
heating oil, natural----
gas and gasoline) Livestock
and Meat (including lean hogs,
pork bellies,
live cattle and feeder cattle)----
Agricultural (including corn,
soybeans, wheat, rice, cocoa,
coffee, cotton and sugar)
------------------------------------------------------------
Listing of Compnies on Stock Exchange
---------- In corporate finance,
a listing refers to the company's
shares being on the
list (or board) of stock that are
officially traded on a stock exchange.
-------------------------------------------------------------
primary market :- The primary market
is where securities are created.
It's in this market that firms sell
(float) new stocks and bonds
to the public for the first time.
An initial public offering,
or IPO, is an example of a
primary market.
------------------------------------------------------------
Secondary Market:- It is the market
where investors buy securities
from other investors,
and not from the issuing organization.
The sale proceeds from the
secondary market go to the
investor, and not the issuing
company
-------------------------------------------------------------
Initial Public Offerings (IPO's)
- A primary market is one that
issues new securities on
an exchange. The primary markets
are where investors can get
first crack at a new security
issuance. The issuing company
offers its equity to investors
or groups and receives
cash proceeds from the sale,
which is then used to fund
operations or expand the business.
It is the largest source of funds
with long or indefinite maturity
for the company.
----------------------------------------------------------
Follow on Public Offer (FPO):-
FPO (Follow on Public Offer)
is a process by which
a company, which is already
listed on an exchange, issues
new shares to the investors
or the existing shareholders,
usually the promoters.
FPO is used by companies
to diversify their equity base.
--------------------------------------------------------
Offer For Sale :-----
OFS stands for Offer for Sale
& serves the same purpose
as traditional
mechanism of Follow-On Public Offer
(FPOs). OFS enables promoters
to dilute their holdings
in listed companies in a
transparent manner with
a wider
participation through
exchange based bidding platform.
----------------------------------------------------------
Broker/Brokage forms:---A
broker is an individual
person who arranges
transactions between
a buyer and a seller
for a commission when
the deal is executed.
A broker who also acts
as a seller or as a buyer
becomes a principal party
to the deal.
---------------------------------------------------------
Demat Acocunt:--A Demat Account is
an account that allows investors to
hold their shares
in an electronic form. Stocks in Demat
account remain in dematerialized form.
Dematerialization is the process of
converting physical shares into
electronic format.
-------------------------------------------------------
trading account:-- Yes. A trading
account
is used to place buy or
sell orders in
the stock market. The demat
account is used as a bank
where shares bought are
deposited in, and where shares
sold are taken from.
-------------------------------------------------------
Brokrage:-----is a commission
that a broker charges on
trade buy and sell of Shares
or Commodity
------------------------------------------------------
Bull or Bullish:- A particular
kind of investor who purchases
shares in the expectation that
the market price of that
company's share will increase( go up).
-----------------------------------------------------
Bear:- A particular kind
of investor who Sales shares
in the expectation that
the market
price of that company's
share will fall(decrease).
--------------------------------------------------------
Squaring off:--- A process
whereby investors/traders
buy or sell shares and later
reverse their
trade to complete a
transaction is called
squaring off of a trade.
Example:- If you purchase
50 shares of say Infosys
and sell them later before
the market closes
then you have squared
off your buy position.
---------------------------------------------------------
Rally :- The word suggests the
gain made by the Sensex or Nifty
during the course of the day. If
such gains are made on a regular
basis then market participants
like investors, brokers etc call
it as a market rally.
------------------------------------------------------------
Crash :- crash refers to a fall in
the value of Sensex and Nifty.
or price of Shares.
------------------------------------------------------
Correction:- A correction
(or a measured fall) in the
Sensex and Nifty takes place
when these indices rise for a
few days and then retrace or
shave off some of these gains.
Fall of Market after big hike
or fall in price of any sahre
after big hike.
hike means go up
--------------------------------------------------------------
Bonus shares:
These are the
free shares that a listed
company gives its shareholders.
---------------------------------------------------------------
Dividend:- It is again a way of
rewarding a company's shareholders.
A dividend is generally issued as
a percentage of the face value
of a share. Face value is the
nominal price of a company's share.
Like bonus shares, dividend amount
also comes from a company's free
cash reserves.
------------------------------------------------------------------
Book closure date:- This is the
date on which a company closes
its books for business after it
announces a bonus or dividend.
The company's registrar keeps a
track of who owns how many
shares of that particular company.
--------------------------------------------------------------------
Beta:- A measurement of the
relationship between the price
of a stock and the movement of
the whole market. If stock XYZ
has a beta of 1.5, that means
that for every 1 point move in
the market, stock XYZ moves 1.5
points and vice versa.
----------------------------------------------------------------------
Blue Chip Stocks:- These are the
large, industry leading companies.
They offer a stable record of
significant dividend payments
and have a reputation of sound
fiscal management. The
expression is thought to
have been derived from blue
gambling chips, which is the
highest denomination of chips
used in casinos.
-----------------------------------------------------------------------
Day Trading(Intraday Trading):-
The practice
of buying and selling within
the same trading day, before
the close of the markets on
that day.
----------------------------------------------------------------------
Exchange:- An exchange is a
place in which different
investments are traded.
The most well-known in
the United States are
the New York Stock Exchange
and the Nasdaq. Bse
Nse
--------------------------------------------------------------------
Execution:- When an order
to buy or sell has been completed
. If you put in an order to
buy 50 shares, this means
that all 50 shares have been bought.
--------------------------------------------------------------------
Margin:- A margin account lets
a person borrow money from
a broker to purchase an investment.
The difference between the amount
of the loan, and the pric
e of the securities, is called
the margin.
-------------------------------------------------------------------
Order:- An investor’s bid
to buy or sell a certain
amount of stock or option
contracts. You have to
put an order in to buy
or sell 200 shares of stock.
--------------------------------------------------------------------
Hedge:- Hedge: This is used
to limit your losses.
You can do this by taking
an offsetting position.
For example, if you hold
50 shares of kbc, you
could short the stock
or futures positions on
the stock.
----------------------------------------------------------------------
Moving Average:- A stock’s
average price-per-share
during a specific period
of time. Some time frames
are 50 and 100 day moving
averages.
----------------------------------------------------------------------
Portfolio:- A collection
of investments owned by
an investor. You can have
as little as one stock
in a portfolio to an
infinite amount of stocks.
----------------------------------------------------------------------
Quote:- Information on a
stock’s latest trading
price. This is sometimes
delayed by 20 minutes
unless you are using
an actual broker trading
platform.
------------------------------------------------------------------------
Sector:- A group of stocks
that are in the same business
. An example would be the
“Technology” sector including
companies like infosys,
quick heal
-------------------------------------------------------------------------
Stock Symbol:- A one-character
to three-character, alphabetic
root symbol, which represents
a publically traded company
on a stock exchange.
vedanta’s stock symbol is Vedl.
-------------------------------------------------------------------------
Volatility:- This refers to
the price movements of a
stock or the stock market
as a whole.lumes.
---------------------------------------------------------------------------
Volume:- Refers to the quantity of Shares.
------------------------------------------------------------------------
Yield:- This usually refers to
the measure of the return on
an investment that is received
from the payment of a dividend
-------------------------------------------------------------------------
Spread:- This is the difference
between the bid and the
ask prices of a stock,
or the amount someone
is willing to buy it
and someone is willing
to sell it.
---------------------------------------------------------------------------
Averaging Down :- This is
when an investor buys more
of a stock as the price goes
down. This makes it so your
average purchase price decreases.
--------------------------------------------------------------------------
Averaging UP :- This is
when an investor Sells more
of a stock as the price goes
UP. This makes it so your
average purchase price decreases.
----------------------------------------------------------------------------
Averaging:
The process of gradually
buying more and more securities
in a declining market
(or selling in a rising market)
in order to level out the
purchase (or sale) price.
----------------------------------------------------------------------------
Bid and offer:-
Bid is the price at
which the market maker
buys from the investor and
offer is the price at which
he offers to sell the stock
to the investor. The offer
is higher than the bid.
---------------------------------------------------------------------------
A debt security, or an IOU
, issued by a company or
government agency is called
a bond. A bond investor lends
money to the issuer and, in
exchange, the issuer promises
to repay the loan amount on a
specified maturity date; the
issuer usually pays the
bondholder periodic interest
payments over the period
of the loan.
-----------------------------------------------------------------
Bourse:- The floor of a
Stock Exchange.
-----------------------------------------------------------------
buyer:- who is willing to
buy the sahres
---------------------------------------------------------------
Seler:- Who is willing to
Sell the Shares.
---------------------------------------------------------------
Buy and Hold:
Buy and hold is a technique
of investing and profiting
in stock market. A stock is
bought and held almost
indefinitely, assuming that
all financial markets, in
spite of good times and
bad times, give a good
rate of return on investment
, in the long run. It is a
long term investment strategy.
-----------------------------------------------------------
Call:
The demand by a company or
any other issuer of shares
for payment, like demand
for full payment on the due
date. A call by a company
should not be confused with
a call option.
-------------------------------------------------------------
Call Option:
This is the right, but
not the obligation, to
purchase shares at a
specified price at a
specified date in the future.
----------------------------------------------------------------
Capital Gain:
The amount by which an
investment's selling price
exceeds its purchase price.
-----------------------------------------------------------------
Capitalization:
The total value of the company in the stock market.
-----------------------------------------------------------------
Capital loss:
The negative difference
between the selling price
of the stock and purchase
price of the stock.
---------------------------------------------------------------------
Capital Market:
A market where debt or
equity securities are traded.
-------------------------------------------------------------------
Cash markets:
The markets where securities
have to be delivered by the
seller and cash to be paid by
the buyer immediately.
--------------------------------------------------------------------
Circuit breaker:
When a stock price increases
or decreases by a certain
percentage in a single day
it hits the circuit breaker.
Once the stock hits the
circuit breaker, trading
in the stock above
(or below) that price
is not allowed for that
particular day.
------------------------------------------------------------------
Clearing House:
Each Exchange maintains a
clearing house to act as the
central agency for effecting
delivery and settlement of contracts
between all members. The days on which
members pay or receive the amounts due
to them are called pay-in or
pay-out days respectively.
-------------------------------------------------------------------
Closing Price:- ----
The last traded price of a security
at the end of a trading day.
------------------------------------------------------------------
Commission:
A fee charged by a broker or distributor
for his/her service in facilitating a
transaction.
----------------------------------------------------------------------
Consideration:---
Consideration is the total purchase
or sale amount associated with a transaction.
------------------------------------------------------------
Contract:--
This is the agreement between
a buyer and a seller of a
security, on any securities market.
---------------------------------------------------------------
Cum-bonus:-
The share is described as
cum-bonus when a potential
purchaser is entitled to
receive the current bonus.
----------------------------------------------------------------------
Cum-rights:---
The share is described as
cum-rights when a potential
purchaser is entitled to
receive the current rights.
-----------------------------------------------------------------
Custodial fees:--
The fees charged by the
custodian for keeping the securities.
-------------------------------------------------------------------
Debenture:---
Debenture is a certificate,
issued against a loan raised
by a company, paying a fixed
rate of interest and is secured
on the assets of the company.
------------------------------------------------------------------------------
Derivatives:----
Instruments derived from
securities or physical markets.
The most common types of
derivatives that ordinary
investors are likely to
come across are futures
, options , warrants and
convertible bonds.
---------------------------------------------------------------------------
Diversification:---
Investing in a basket of shares
with different risk-reward profile
and correlation so as to minimize
unsystematic risk.
------------------------------------------------------------------------
Earnings Per Share (EPS):---
This measure expresses how much
the company is earning for every
share held. It is calculated by
dividing pre tax profit by the
number of shares in issued.
Earnings per share is more
important than the overall
reported profit figure, because
the EPS provides a better measure
of profitability.
-------------------------------------------------------------------
Futures:---
A contract for the purchase
and sale of a commodity, financial
instrument or index at a fixed price
at a fixed date in the future.
Futures markets were created to
allow producers or consumers
to hedge the risk of the
possible price change in the future.
--------------------------------------------------------------------
Fundamental analysis:-
Fundamental analysis is a method
to determine the health of the
financial statements and focuses
on the strengths and weaknesses of
the underlying company and is
unconcerned about daily price
movements and volume variations.
-----------------------------------------------------------------------
Gaps:---
Gaps are continuation chart
pattern, formed by an unfilled
space between trading session.
Gaps are referred as Tasuki,
meaning window in candlestick
charting.
--------------------------------------------------------------------
Good Till Cancellation:--
GTC or Good Till Cancellation is
an attribute attached to a
buy or sell order, to keep
the order in system until it
gets executed or canceled.
------------------------------------------------------------------------
Good Till Day:
GTD or Good Till Day is an
attribute attached to a buy or
sell order, to keep the order in
system, until a date if not
canceled or executed. They are
also known as GTT orders,
meaning Good Till Time.
---------------------------------------------------------------------
Hedging:---
Offsetting or guarding against
investment risk. A perfect hedge
is a no-risk-no gain precaution.
A conservative strategy for
reduction of risk through futures,
options or some other derivative, by
opening an opposite position to that
already held in the underlying market.
Taking positions in securities so that
each offsets the other.
----------------------------------------------------------------------
Limit Order:---
Limit order is an attribute
attached to a buy or sell
order, which will allow you
to trade at your price
or a better price.
----------------------------------------------------------------------
Line Charts:
Line charts are stock charts
used in charting and study of
chart patterns in technical
analysis. These charts are
created by connecting a series
of data points together to
form a line. This is the
basic type of chart common
in many fields.
------------------------------------------------------------------------
Market Trends:-
Market trends signifies
the movement of the stock
prices, in any one direction
compared to its historical
prices. Understanding the
trend of a stock is the
first step in technical analysis.
-------------------------------------------------------------------------
Money Management:--
It is a process of managing
capital, to reduce the risk
and increase the reward.
--------------------------------------------------------------------------
Price Action Trading:--
Price Action Trading is a
technique of day trading and
profiting in stock market.
This is a simplistic and
minimalistic approach to
trading. Such traders are
referred as Price action Traders.
----------------------------------------------------------------------
Share certificate:--
This is a legal document
which can be used as proof of
ownership of a shareholding.
-------------------------------------------------------------------------
Security:--
A Security is a valid and
unique combination of Symbo
and Series. Securities are
traded in
the Capital Market. Shares
and Debentures are some
examples of securities.
----------------------------------------------------------------------------
Stock:--
A financial instrument
that signifies an ownership
of a company, and represents
a claim on its proportional
share in the company's assets
and profits.
----------------------------------------------------------------------------
Stock Chart:--
A stock chart is a visual
representation of data,
in which the data is
represented by symbols
such as lines in a line
chart, bars in a bar chart
or candles in a candlestick
chart.
-- --------------------------------------------------------------------
Stock Trading:--
Buying and selling of
securities and commodities.
--------------------------------------------------------------------
Stock Trading Orders:--
Stock Trading Orders are a
set of instructions, given to
the stock broker, regarding
buying or selling a stock.
--------------------------------------------------------------------
Stop Limit Order:--
Stop Limit order is an attribute
attached to a buy or sell order,
so that the order gets executed
as a limit order, only after the
price has reached a specific
trigger price.
----------------------------------------------------------------------
Stop Loss Order:-
Stop Loss order is an
attribute attached to a
buy or sell order, so that
the order gets executed as
a market order, only after
the price has reached a
specific trigger price.
---------------------------------------------------------------------
Swing Charts:----
Swing charts are stock
charts used in charting
and study of chart patterns
in technical analysis.
They plot the price swings
of a stock disregarding time
factor. They are also called
as Gann charts because their
construction is based on
W.D.Gann's method of trading.
-------------------------------------------------------------------------
Technical Analysis:--
Technical analysis is a
security analysis based
on stock's market data like
, price and volume, and open
interest in case of futures.
---------------------------------------------------------------------
Technical Indicators:
Technical Indicators in
stock trading shows you the
direction of the market, when
probably to buy or sell, when
probably to book profit and
importantly when not to do
anything. They are derived
from the price and volume values.
-----------------------------------------------------------------------
Value Investing:--
Value Investing is a method
of stock trading, where in
investment is made in
undervalued companies
which have high intrinsic value.
-------------------------------------------------------------------------
White Candles:---
White Candles or white
candlesticks are bullish
lines in candlestick and
candlevolume charts. They
signify that the closing
is higher than opening for
that time period.
------------------------------------------------------------------------
Trend Trading:--
Trend Trading is a technique
of stock trading, where a trade
is entered after confirmation
of a trend and is carried on
to the end of the trend.
-------------------------------------------------------------
What is Investment?
----
The money you earn is
partly spent and the
rest saved for meeting
future expenses. Instead
of keeping the savings idle
you may like
to use savings in order
to get return on it in the
future. This is called
Investment.
---------------------------------------------------------------
Why should one invest?
----
One needs to invest to:
earn return on your idle resources
generate a specifi ed sum
of money for a specific
goal in life
make a provision for
an uncertain future
-----------------------------------------------------------------
When to start Investing?
---
The sooner one starts investing
the better. By investing early you
allow your investments more
time to grow, whereby the concept
Basics of Financial Markets
of compounding (as we shall see later)
increases your income, by a
cumulating the principal and the
interest or dividend earned on it,
year after year. The three golden
rules for all investors are:
Invest early
Invest regularly
Invest for long term and not short term
----------------------------------------------------------------
What care should one take
while investing?
---
Before making any investment
, one must ensure to:
1. obtain written documents
explaining the investment
2. read and understand such
documents
3. verify the legitimacy of
the investment
4. fi nd out the costs and
benefi ts associated with
the investment
5. assess the risk-return
profi le of the investment
6. know the liquidity and
safety aspects of the investment
7. ascertain if it is
appropriate for your specific
goals
8. compare these details with
other investment opportunities
available
9. examine if it fi ts in with
other investments you are
considering or
you have already made
10. deal only through an
authorised intermediary
11. seek all clarifi cations
about the intermediary and the investment
12. explore the options available
to you if something were to go
wrong, and then, if satisfi ed, make the investment.
These are called the Twelve Important
Steps to Investing.
--------------------------------------------------------------------
Short-term fi nancial options :---
Savings Bank Account
Money Market or Liquid Funds
are a specialized form of mutual
funds that invest in extremely
short-term fi xed income instruments
and thereby provide easy liquidity
. Unlike most mutual funds, money
market funds are primarily
oriented towards protecting
your capital
and then, aim to maximise
returns. Money market funds
usually
yield better returns
than savings accounts,
but lower than bank fi xed
deposits.
Fixed Deposits with Banks
------------------------------------------------------------------
What are various Long-term fi nancial options available for
investment?
Post Offi ce Savings Schemes,
Public Provident Fund, Company
Fixed Deposits,
Bonds and Debentures,
Mutual Funds etc.
-----------------------------------------------------------------------
Public Provident Fund:-
A long term savings instrument
with
a maturity of 15 years and
interest payable at 8% per annum
compounded annually.
A PPF account can be opened
through a
nationalized bank at anytime
during the year and is open all
through
the year for depositing money.
Tax benefi ts can be availed for the
amount invested and interest
accrued is tax-free. A withdrawal is
permissible every year from
the seventh fi nancial
year of the date of
opening of the account
and the amount of withdrawal
will be limited
to 50% of the balance at
credit at the end of the
4th year immediately
preceding the year in which
the amount is withdrawn or at
the end of
the preceding year whichever
is lower the amount of loan
if any.
-----------------------------------------------------------------
Company Fixed Deposits:---
These are short-term (six months)
to
medium-term (three to fi ve years)
borrowings by companies at a
fi xed rate of interest which
is payable monthly, quarterly, semi10
annually or annually. They can
also be cumulative fi xed deposits
where the entire principal alongwith
the interest is paid at the end of
the loan period. The rate of
interest varies between 6-9% per annum
for company FDs. The interest
received is after deduction of taxes.
Bonds: It is a fi xed income
(debt) instrument issued for
a period of
more than one year with the
purpose of raising capital.
The central or
state government, corporations
and similar institutions sell bonds.
A bond is generally a promise
to repay the principal along
with a fi xed
rate of interest on a specifi
ed date, called the Maturity Date.
-----------------------------------------------------------------------
Mutual Funds: These are funds
operated by an investment company
which raises money from the
public and invests in a group
of assets
(shares, debentures etc.), in
accordance with a stated set
of objectives.
It is a substitute for those
who are unable to invest directly
in equities
or debt because of resource,
time or knowledge constraints.
------------------------------------------------------------------
What is a ‘Debt Instrument’?
Debt instrument represents a
contract whereby one party
lends
money to another on
pre-determined terms with
regards to rate and
periodicity of interest,
repayment of principal amount
by the borrower
to the lender. In the Indian
securities markets, the term
‘bond’ is used
for debt instruments issued
by the Central and State
governments
and public sector
organizations and the
term ‘debenture’ is used for
instruments issued by private
corporate sector.
-----------------------------------------------------------------
Derivative:-
Derivative is a product
whose value is derived
from the value of one
or more basic variables,
called underlying.
The underlying asset can
be equity, index, foreign
exchange (forex), commodity
or any other
asset. Derivative products
initially emerged as hedging
devices against
fl uctuations in commodity
prices and commodity-linked
derivatives
remained the sole form of
such products for almost
three hundred
years. The fi nancial
derivatives came into
spotlight in post-1970
period due to growing
instability in the fi nancial
markets. However,
since their emergence,
these products have become
very popular and
by 1990s, they accounted for
about twothirds of total
transactions in
derivative products.
-----------------------------------------------------------------
An Index
An Index shows how a specified
portfolio of share prices
are moving
in order to give an indication
of market trends.
It is a basket of
securities and the average
price movement of the basket
of securities
indicates the index movement,
whether upwards or downwards.
-----------------------------------------------------------------
Dematerialization:----
Dematerialization is the
process by which physical
certifi cates
of an investor are converted
to an equivalent number of
securities
in electronic form and credited
to the investor’s account
with his
Depository Participant (DP).
-----------------------------------------------------------------
functions of Securities Market:-
Securities Markets is a place
where buyers and sellers
of securities
can enter into transactions
to purchase and sell shares,
bonds,
debentures etc. Further,
it performs an important
role of enabling
corporates, entrepreneurs
to raise resources for their
companies and
business ventures through
public issues. Transfer of
resources from
those having idle resources
(investors) to others who
have a need for
them (corporates) is most
effi ciently achieved through
the securities
market. Stated formally,
securities markets provide
channels for
reallocation of savings to
investments and
entrepreneurship. Savings
are linked to investments
by a variety of intermediaries
, through a
range of fi nancial products,
called ‘Securities’.
------------------------------------------------------------------
Which are the securities one can invest in?
Shares
Government Securities
Derivative products
Units of Mutual Funds etc.
, are some of the securities
investors in
the securities market
can invest in.
-------------------------------------------------------------------
Role of the ‘Primary Market’:-
The primary market provides the
channel for sale of new
securities.
Primary market provides
opportunity to issuers of
securities;
Government as well as corporates
, to raise resources to meet their
requirements of investment and/or
discharge some obligation. They
may issue the securities at face
value, or at a discount/premium
and
these securities may take a
variety of forms such as equity,
debt etc.
They may issue the securities
in domestic market and/or international
market.
----------------------------------------------------------------
Need to issue
shares to the public:-
Most companies are usually
started privately by their
promoter(s).
However, the promoters’
capital and the borrowings
from banks and
fi nancial institutions
may not be suffi cient for
setting up or running the
business over a long term.
So companies invite the public
to contribute
towards the equity and issue
shares to individual investors.
The way
to invite share capital from
the public is through a
‘Public Issue’.
Simply stated, a public issue
is an offer to the public to
subscribe to
the share capital of a company.
Once this is done, the company
allots
shares to the applicants as
per the prescribed rules and
regulations
laid down by SEBI.
-----------------------------------------------------------------
Meant by Market Capitalisation:---
The market value of a quoted
company, which is calculated by
multiplying its current share
price (market price) by the number
of
shares in issue is called as
market capitalization. E.g.
Company A has
120 million shares in issue.
The current market price is Rs.
100. The
market capitalisation of company
A is Rs. 12000 million.
------------------------------------------------------------------
What is a Prospectus :---
A large number of new companies
float public issues.
While a large
number of these companies are
genuine, quite a few may want to
exploit the investors.
Therefore, it is very
important that an investor
before applying for any
issue identifi es future
potential of a company.
A part of the guidelines
issued by SEBI
(Securities and Exchange
Board of India) is the
disclosure of 23 information
to the public.
This disclosure includes information
like the reason for raising the
money, the way money is proposed
to be spent, the return expected
on the money etc. This information
is in the form of ‘Prospectus’
which also includes information
regarding the size of the issue, the
current status of the company,
its equity capital, its current
and past
performance, the promoters, the
project, cost of the project,
means of
fi nancing, product and capacity etc.
It also contains lot of mandatory
information regarding underwriting
and statutory compliances. This
helps investors to evaluate short
term and long term prospects of the
company.
-----------------------------------------------------------------
Meant by Secondary market :---
Secondary market refers to a
market where securities are
traded after
being initially offered to
the public in the primary market
and/or
listed on the Stock Exchange.
Majority of the trading is done
in the
secondary market. Secondary market
comprises of equity markets
and the debt markets.
------------------------------------------------------------------
Contract Note :--
Contract Note is a confi
rmation of trades done
on a particular day
on behalf of the client
by a trading member.
It imposes a legally
enforceable relationship
between the client and
the trading member
with respect to purchase/sale
and settlement of trades.
It also helps to
settle disputes/claims between
the investor and the
trading member. It
is a prerequisite for filing
a complaint or arbitration
proceeding against
the trading member in case
of a dispute. A valid contract
note should
be in the prescribed form,
contain the details of trades
, stamped with
requisite value and duly
signed by the authorized
signatory. Contract
notes are kept in duplicate
, the trading member and the
client should
keep one copy each. After
verifying the details
contained therein,
the client keeps one copy
and returns the second copy
to the trading
member duly acknowledged by him.
-----------------------------------------------------------------
Precautions सावधानीय़ाँ :- must one take
before investing in the stock
marketsछ-
Here are some useful pointers
to bear in mind before you invest in the
markets:
Make sure your broker is
registered with SEBI and the
exchanges
and do not deal with unregistered
intermediaries.
Ensure that you receive contract
notes for all your transactions
from your broker within one working
day of execution of the
trades.
All investments carry risk of
some kind. Investors should always
know the risk that they are
taking and invest in a manner that
matches their risk tolerance.
Do not be misled by market
rumours, luring advertisement
or ‘hot
tips’ of the day.
Take informed decisions by
studying the fundamentals of the
company. Find out the business
the company is into, its future
prospects, quality of management
, past track record etc Sources of
knowing about a company are
through annual reports, economic
magazines, databases available
with vendors or your fi nancial
advisor.
If your fi nancial advisor
or broker advises you to
invest in a
company you have never heard
of, be cautious. Spend some
time
checking out about the company
before investing.
Do not be attracted by
announcements of fantastic
results/news
reports, about a company.
Do your own research before
investing
in any stock.
Do not be attracted to stocks
based on what an internet website
promotes, unless you have done
adequate study of the company.
Investing in very low priced
stocks or what are known as penny
stocks does not guarantee high
returns.
Be cautious about stocks which show a
sudden spurt in price or
trading activity.
Any advise or tip that claims
that there are huge returns expected,
especially for acting quickly,
may be risky and may to lead to
losing some, most, or all of your money.
-----------------------------------------------------------------
------------------------------------------------------------------
ईपीएफ क्या है कर्मचारी भविष्य निधि (ईपीएफ)
निजी क्षेत्र के कर्मचारियों को रिटायरमेंट बेनिफिट पहुंचाने के लिए और बेहतर तरीके से बचत करने का साधन है जिसमें आम जमा योजनाओं से बेहतर ब्याज मिलता है और इनकम टैक्स पर भी छूट मिलती है. इस योजना में आपका एम्प्लायर भी अपना योगदान करता है और आपकी सैलेरी में से भी योगदान काटा जाता है. रिटायरमेंट के समय ब्याज सहित एक मुश्त राशि आपको मिल जाती है.
---------------------------------------------------------------------------
म्यूचुअल फंड क्या है Mutual Fund :-
निवेशकों की एक बड़ी संख्या के द्वारा जमा पैसा राशी को म्यूचुअल फंड कहते हैं जिसे एक फण्ड मे ं डाल दिया जाता है। फण्ड मेनेजर इस पैसे को विभिन्न वित्तीय साधनों में निवेश करने के लिए अपने निवेश प्रबंधन कौशल का उपयोग करता है.
------------------------------------------------------------------
Mutual Fund Unit:- जब बहुत से निवेशक मिल कर एक फण्ड में निवेश करते हैं तो फण्ड को बराबर बराबर हिस्सों में बाँट दिया जाता है जिसे इकाई या यूनिट Unit कहते हैं.
-------------------------------------------------------------------
EPS क्या है और कैसे गिनें प्रति शेयर आय ----
कंपनी की कुल शुद्ध लाभ से हर शेयर के हिस्से में कितनी रकम आयेगी उसे ही Earning per Share
प्रति शेयर आय यानि EPS कहते हैं। इसे गिनेंगे
शुद्ध लाभ / कुल शेयरों की संख्या
यदि 10 करोड़ रु की पूंजी वाली कंपनी जिसके 10
रु की कीमत वाले 1
करोड़ शेयर हों और वह कंपनी 20 करोड़ रुपये का शुद्ध लाभ कमाती है तो उसकी प्रति शेयर आय 20
रुपये होगी:
20 करोड़ / 1 करोड़ = 20
यदि कोई कंपनी केवल तिमाही नतीजे ही घोषित करती है तो उन नतीजों के आधार पर कंपनी के पूरे साल के प्रति शेयर आय की भी गणना की जा सकती है। -------------------------------------------------------------------
PE Ratio पी ई रेश्यो क्या :-
PE Ratio यह जानने का तरीका है कि कंपनी की आय का जो हिस्सा प्रति शेयर को प्राप्त होगा उसके अनुपात में शेयर की बाजार में कीमत क्या है. PE Ratio जानने के लिए सबसे पहले गिनते हैं EPS यानि प्रति शेयर आय. उसके बाद एक शेयर की कीमत से EPS को विभाजित करके PE Ratio निकाल सकते हैं.
पी ई रेश्यो =शेयर की बाजार में कीमत/प्रति शेयर आय
PE Ratio = Merket Price / EPS
अब इसे एक उदहारण से समझते हैं. मान लीजिये अबस कंपनी के दस रुपये मूल्य के 100000 शेयर हैं.
कंपनी की वार्षिक आय है रुपये 2,00,000. अब शेयर का EPS
होगा 2,00,000/100000 = रु 2. अब यदि शेयर का बाजार में मूल्य रु 18 है तो शेयर का PE Ratio होगा:
PE Ratio = 18/2 =9.
--------------------------------------------------------------------
The net asset value (NAV) :---
of a mutual fund indicates the
price at which the units of that
mutual fund are bought or sold.
It represents the fund's market
value after subtracting the
liabilities.
Net Asset Value,
या NAV का अर्थ है कुल संपत्ति का मूल्य.
किसी भी Mutual Fund म्यूचुअल फण्ड में नेट एसेट वैल्यू , या एनएवी का मतलब नकदी सहित पोर्टफोलियो के सभी शेयरों के बाजार मूल्य के कुल योग में से देनदारियों को घटाने के बाद बकाया जो भी बचे उसे इकाइयों की कुल संख्या से विभाजित करके प्राप्त किया जाता है.
--------------------------------------------------------------------
Book Value:-
Book value of an asset is
the value at which the asset
is carried on a balance sheet
and calculated by taking the
cost of an asset minus the
accumulated depreciation.
बुक वैल्यू वास्तव में कंपनी के खातों में वह वैल्यू है जो की किसी कंपनी को यदि बेचा जाए तो उसकी संपत्तियों से देनदारियां घटा कर प्रति शेयर कितना भुगतान प्राप्त होगा. किसी शेयर की बुक वैल्यू उसकी शेयर कैपिटल और जनरल रिज़र्व के जोड़ को कुल शेयरों की संख्या से विभाजित करके भी प्राप्त किया जा सकता है.
--------------------------------------------------------------------
Face Value :- It Represent to the
value of any Share at which this is
issued at IPO time.
फेस वैल्यू Face Value यानी अंकित मूल्य शेयर की वास्तविक कीमत होती है जो कि शेयर प्रमाण पात्र पर अंकित रहती है. यदि अबस कंपनी की कुल शेयर पूँजी दो करोड़ रुपये है और वह दस रुपये प्रति शेयर के बीस लाख शेयर जारी करती है तो दस रुपये अबस कंपनी के शेयर की फेस वैल्यू यानी अंकित मूल्य होगी. फेस वैल्यू को पार वैल्यू Par Value या केवल पार भी कहते हैं.
-------------------------------------------------------------------
Stock Split :-A stock split
is a corporate action in
which a company divides its
existing shares into multiple
shares to boost the liquidity
of the shares.
Stock Split तब होता है जब कोई company नये स्टॉक जारी करने के लिए और उसे अपने जो भी स्टॉकहोल्डर्स हे उनको बाटने का निर्णय करती हे ।इन कंपनी के बोर्ड ऑफ डायरेक्टर्स द्वारा यह निर्णय लिया जाता है। जब ऐसा होता है तो शेयरधारक के पास जो भी शेयर्स होते हे वो अब ज्यादा हो जाते हे हे लेकिन उनका मूल्य आधा हो जाता हे । आपके स्टॉक का कुल मूल्य नहीं बदलता है। उदाहरण के लिए, यदि पास Stock Split के पहले 100 शेयर होते हैं और कीमत RS. 500 . प्रति शेयर थी,
तो Stock Split के बाद आप RS. 250
प्रति शेयर पर 200 शेयर होंगे । --------------------------------------------------------------------
Reverse Split:- रिवर्स Split
कभी-कभी कोई कंपनी रिवर्स स्प्लिट जारी करेगी। जब ऐसा होता है तो शेयरधारक के पास अधिक मूल्य पर कम शेयर होंगे। उदाहरण के लिए, एक विशिष्ट रिवर्स विभाजन 1 विभाजन के लिए 1 है। उदाहरण के लिए, यदि कोई कंपनी rs
1 शेयर पर ट्रेडिंग कर रहा है और आपके पास 100 शेयर हैं, तो 10 स्प्लिट के लिए 1 के बाद, आपके पास rs
10 शेयर पर 10 शेयर होंगे। एक कंपनी एक रिवर्स विभाजन का प्रदर्शन कर सकती है, जब उनकी शेयर की कीमत बहुत कम स्तर पर आ गई है और वे संभावित निवेशकों के लिए और अधिक सम्मानजनक दिखाई देने के लिए शेयर की कीमत में वृद्धि करना चाहते हैं। इसके अलावा, कुछ एक्सचेंज एक स्टॉक को सूचीबद्ध नहीं करेंगे, जब कीमत 30 दिनों के लिए एक निश्चित स्तर से कम हो जाएगी। -------------------------------------------------------------------
Bonus Shares/ Issue :- Bonus shares
are additional shares given to
the current shareholders without
any additional cost, based upon
the number of shares that a
shareholder owns. These are
company's accumulated earnings
which are not given out in the
form of dividends, but are
converted into free shares.
किसी भी share holder को जब कोई company उसके share holder के द्वारा खरीदे हुए share के ऊपर share
देती है तब उस दिये हुए शेयर को bonus
share कहा जाता है। bonus share
मिलने से share holder के उस share
की संख्या बढ़ती है। जो संख्या उसने already
खरीद रखी है। --------------------------------------------------------------------
Settlement:-
The process that follows
a transaction when the seller
delivers the security to
the buyer and the buyer pays
the seller for the security.
It happens in Indian Share Market
after T+2 days base means
T- Trading day + 2 days later
--------------------------------------------------------------------
Assets:
Everything a company
or person owns, including money,
securities, equipment and real
estate. Assets include everything
that is owed to the company or person.
Assets are listed on a company's
balance sheet or an individual's
net worth statement.
--------------------------------------------------------------------
Bid:--- The highest price a
buyer is willing to pay for
a stock. When combined with
the ask price information, it
forms the basis of a stock quote.
---------------------------------------------------------------------
Bid Size: The aggregate size
in board lots of the most
recent bid to buy a particular
security.
-------------------------------------------------------------------
Bonds: Promissory notes issued
by a corporation or government
to its lenders, usually with a
specified amount of interest for a
specified length of time.
--------------------------------------------------------------------
Book: An electronic record of
all pending buy and sell orders
for a particular stock.
---------------------------------------------------------------------
Booked Orders: Orders that do
not trade immediately upon entry.
These orders are also known as
outstanding orders.
--------------------------------------------------------------------
Buy-In: If a broker fails to
deliver securities sold to another
broker on the settlement date, the
receiving broker may buy the securities
at the current market price of the stock
and charge the delivering broker the
cost difference of such a purchase.
----------------------------------------------------------------------
----------------------------------------------------------------------
Call Option: An option which gives
the holder the right, but not the
obligation, to buy a fixed amount
of a certain stock at a specified
price within a specified time.
Calls are purchased by investors
who expect a price increase.
कॉल ऑप्शन धारक को समापन अवधि से पहले किसी भी समय स्ट्राइक मूल्य पर अंतनिर्हित स्टॉक खरीदने का अधिकार देता है. समान्य तौर पर, अंतनिर्हित साधनों का मूल्य बढ़ने पर कॉल ऑप्शन का मूल्य भी बढ़ता है.
------------------------------------------------------------------------
A put option is an option contract
giving the owner the right, but not
the obligation, to sell a specified
amount of an underlying security at
a specified price within a specified
time. This is the opposite of a call
option, which gives the holder the
right to buy shares.
इपुट ऑप्शन समापन दिनांक को या उसके पहले स्ट्राइक मूल्य पर धारक को अंतर्निहित शेयर बेचने का अधिकार प्रदान करते हैं. अंतर्निहित साधनों का मूल्य कम होने पर पुट ऑप्शन का मूल्य बढ़ता है. पुट ऑप्शन वह है जिसमें कोई व्यक्ति बाद में होने वाली मूल्य गिरावट के लिए कोई स्टॉक सुनिश्चित कर सकता है.
यदि आपके स्टॉक का मूल्य कम होता है,
तो आप अपना पुट ऑप्शन लेकर इसे पूर्व में निर्धारित मूल्य स्तर पर बेच सकते हैं. यदि स्टॉक मूल्य ऊपर जाता है, तो आपको बस केवल चुकायी गई प्रीमियम राशि की हानि होती है.
------------------------------------------------------------------
Cash Dividend / Distribution: A dividend/
distribution that is paid in cash.
--------------------------------------------------------------------
Certificate: The physical document
that shows ownership of a bond, stock
or other security
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Closing Transaction:- An order to
close out an existing open futures
or options contract.
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Ex Dividend: The holder of shares
purchased ex dividend is not entitled
to an upcoming already-declared
dividend, but is entitled to future
dividends.
वह तारीख जिस पर या उसके बाद खरीदे गए शेयर पर खरीदार को लाभांश नहीं मिलता। सामान्य तौर पर शेयर बाजार में इसे एक्स डेट के नाम से जाना जाता है। इसे नकद लाभांश के अलावा अन्य स्थितियों जैसे स्टॉक स्प्लिट और स्टॉक बोनस में भी इस्तेमाल किया जाता है। --------------------------------------------------------------------
Ex Right: The holder of shares
purchased ex rights is not
entitled to already-declared
rights, but is entitled to
future rights issues.
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Exchange-Traded Fund (ETF):
A special type of financial trust
that allows an investor to buy
an entire basket of stocks through
a single security, which tracks
and matches the returns of a
stock market index. ETFs are
considered to be a special type
of index mutual fund, but they
are listed on an exchange and
trade like a stock.
ETF यानी Exchange Traded Fund
एक्सचेंज ट्रेडेड फण्ड वास्तव में इंडेक्स फण्ड होते हैं जो कि स्टॉक एक्सचेंज में शेयरों की तरह ही ख़रीदे और बेचे जाते हैं. विश्व भर में ETF यानी Exchange Traded Fund एक्सचेंज ट्रेडेड फण्ड रिटेल निवेशकों और संस्थागत निवेशकों में बहुत ही लोकप्रिय निवेश का साधन है.
हम यह कह सकते हैं कि यह एक सस्ता निवेश का साधन है क्योंकि इस फण्ड में चार्जेज आम तौर पर दुसरे फंड्स के मुकाबले कम होते हैं.
आप इन्हें अपने ब्रोकर से अथवा सीधे फण्ड हाउस से भी खरीद सकते हैं. जहां म्यूच्यूअल फण्ड दिन के आखिर में NAV पर लिए जाते हैं, ETF ट्रेडिंग के घंटों में ही उस समय के ट्रेडिंग के वास्तविक कीमतों पर ख़रीदे और बेचे जा सकते हैं. यानि ETF में डे ट्रेडिंग भी संभव है.
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Exercise: The act of an option
holder who chooses to take delivery
(calls) or make delivery (puts) of
the underlying interest against
payment of the exercise price.
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Filing Statement: A disclosure
document submitted by a listed
company to outline material changes
in its affairs. Filing statements
are not used for the purposes of a
financing.
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Futures:- Contracts to buy
or sell securities at a future date.
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Growth Stock:- The shares of companies
that have enjoyed better-than-average
growth over recent years and are
expected to continue their climb.
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Income Stock:- A security with a
solid record
of dividend payments and which offers
a dividend yield higher than the
average common stock.
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Inflation:- An overall increase
in prices for goods and services,
usually measured by the percentage
change in the Consumer Price Index.
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Inside Information:- Non-public information
pertaining to the business affairs
of a corporation
that could affect the company's
share price should the information
be made public.
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Insider:- All directors and senior
officers of a company, and those who
are presumed to have access to inside
information concerning the company.
An insider is also anyone owning
more than 10% of the voting shares
of a company.
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Insider Trading:- There are two types
of insider trading.
The first type occurs when
insiders
trade in the stock
of their company.
Insiders must report these
transactions to the appropriate
securities commissions. The other
type of insider trading is when
anyone trades securities based on
material information that is not
public knowledge. This type of insider
trading is illegal.
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International Securities Identification Number
(ISIN):--
The international standard that is
used to uniquely identify securities.
It consists
of a two-character alphabetic country
code specified in ISO 6166, followed by
a nine-character alphanumeric security
identifier (assigned by a national
security numbering agency), and then
an ISIN check-digit.
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Investment:- The purchase or ownership
of a security in order to earn income,
capital or
both. Investments may also include
artwork, antiques and real estate.
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Investment Advisor: A person employed
by an investment dealer who provides
investment advice to clients and executes
trades on their behalf in securities and
other investment products.
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Last Trading Day:--- The last day on
which a futures or option
contract may be traded.
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Limit Order: An order to buy or sell
stock at a specified price. The order
can be executed only at the specified
price or better. A limit order sets the
maximum price the client is willing to
pay as a buyer, and the minimum price
they are willing to accept as a seller.
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After Market Order :- Stock market opens
at 9.15 am
on weekdays and closes at 3.30 pm
but using this option you may order to
buy or sell any shares after working
hours of market.
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Listed Stock:-- Shares of an issuer that
are traded on a stock exchange.
Issuers pay fees to
the exchange to be listed and must
abide by the rules and regulations
set out by the exchange to maintain
listing privileges.
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Market Order:- An order to
buy or sell stock immediately
at the best current price.
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One-Sided Market:-- A market that
has only buy orders or only sell
orders booked for a
particular security.
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Open Order:- An order that
remains in the system for more
than a day. See Good-Till-Cancelled or
Good-Till-Date.
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Over-The-Counter (OTC) Market:-
The market maintained by securities
dealers for issues not
listed on a stock exchange.
Almost all bonds and debentures,
as well as some stocks, are traded
over-the-counter. An OTC market is
also known as an unlisted market.
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Penny Stock:- Low-priced speculative
issues of stock selling at less
than Re. 1 a share.
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Position Limit:-- The maximum number
of futures or options contracts
any individual or group of people
acting together may hold at one time.
पैनी स्टॉक्स Penny Stocks आम तौर पर उन शेयरों को कहा जाता है जो शेयर बाजार में बहुत ही कम कीमतों पर उपलब्ध होते हैं.
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Premium:- Price of An option contract.
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Real Estate Investment Trust (REIT):
Typically, a closed-end investment fund
that trades on an exchange and uses the
pooled capital of many investors to
purchase and manage income properties.
Equity REITs primarily own commercial
real estate, such as shopping centres,
apartments, and industrial buildings.
By taking advantage of the trust
structure, REITs offer tax advantages
(beyond traditional common equity investments)
to investors and provide a liquid way to
invest in real estate, which otherwise
is an illiquid market.
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Redeemable Security: A security
that carries a condition giving
the issuer a right to call in
and retire that security at a
certain price and for a certain
period of time.
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Risk: The future chance or probability of loss.
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Short Selling:-- The selling of a
security that the seller does not
own (naked or uncovered
short) or has borrowed (covered short).
Short selling is a trading strategy.
Short sellers assume the risk that
they will be able to buy the stock
at a lower price.
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Positions Limit: Maximum number of
futures and options contract that any
individual investor can hold at any
given point of time.
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Disclaimer
:- This Informations is provided is on "AS - IS" bases.
The information contained herein is subject to change without
prior notice. While every effort is made to ensure the accuracy and
completeness of information contained, the Everyday-Intraday-Tips makes no
guarantee and assumes no liability for any errors or omissions of
the information. No one can use the information as the basis for any
claim, demand or cause of action.
